Ask Colin

Could you give me, in order of priority, a reading list on money management?

As a starting point, I don't think that you can go past Dr Alexander Elder's book Come into my Trading Room. I have reviewed it in my newsletter No 24 and there is a special offer from Dr Elder if you would like to buy an autographed copy from him. The chapter on money management is excellent, but if you are interested in trading you are going to want to read the whole book.

After that, I would read Van K Tharp's book Trade Your Way to Finacial Freedom, which is easy to read and will take you into other areas not discussed in detail in Elder.

A far more technical book is Balsara's book, listed elsewhere on my web site Ask Colin/Education/Books.

I found the discussion in the second half of Robert Rotella's book The Elements of Successful Trading to be very useful in exploring the issues when I was learning.

There is also some good discussion in Teweles and Jones The Futures Game and much more besides. However, while it will help stock traders the book overall is aimed at futures traders.

Jack Schwager's Market Wizard Books are also well worth reading in their own right and will give you valuable insights into how the best traders look at money management among many other issues.

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